10 01:58:43 The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 2016...
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10 01:58:43 The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 2016 2015 $ 99,575 $34.955 25,500 105,000 86,250 163,000 4,000 Cash Available-for-sale securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Cash flows from operating activities: Adjustments for noncash effects: Total liabilities and shareholders' equity $1,073,375 $946,205 Net cash flows from operating activities Cash flows from investing activities: 100,000 185,000 3,300 $ Additional information for 2016 Sold available-for-sale securities costing $79,500 for $86,000. Equipment costing $20,000 with a book value of $7,000 was sold for $9,000. Issued 6% bonds payable at face value, $220,000. Purchased new equipment for $165,000 cash. Paid cash dividends of $30,000. Net income was $70,000. Net cash flows from investing activities Cash flows from financing activities: 1,290,000 1,145,000 (630,000) (592,000) $ 1,073,375 $ 946,205 Required: Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be Indicated with a minus sign.) MURDOCK COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Net cash flows from financing activities Cash balance, January 1 Cash balance, December 31 94,340 28,000 43,000 220,000 300,000 300,000 388,035 348,035 $168.670 34,500 95,000 0 S S 0 0 0 10 01:58:43 The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 2016 2015 $ 99,575 $34.955 25,500 105,000 86,250 163,000 4,000 Cash Available-for-sale securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Cash flows from operating activities: Adjustments for noncash effects: Total liabilities and shareholders' equity $1,073,375 $946,205 Net cash flows from operating activities Cash flows from investing activities: 100,000 185,000 3,300 $ Additional information for 2016 Sold available-for-sale securities costing $79,500 for $86,000. Equipment costing $20,000 with a book value of $7,000 was sold for $9,000. Issued 6% bonds payable at face value, $220,000. Purchased new equipment for $165,000 cash. Paid cash dividends of $30,000. Net income was $70,000. Net cash flows from investing activities Cash flows from financing activities: 1,290,000 1,145,000 (630,000) (592,000) $ 1,073,375 $ 946,205 Required: Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be Indicated with a minus sign.) MURDOCK COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Net cash flows from financing activities Cash balance, January 1 Cash balance, December 31 94,340 28,000 43,000 220,000 300,000 300,000 388,035 348,035 $168.670 34,500 95,000 0 S S 0 0 0
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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